SA sales have met expectations, Famous Brands says
The group reported that sales across all restaurants in SA grew 6.4% in its year to end-February, despite the effects of load-shedding
Famous Brands, the owner of Steers, Wimpy and Debonairs Pizza, said on Thursday sales growth for its year to end-February met expectations even as it battled with load-shedding and SA's deteriorating economy.
System-wide sales for its restaurants in SA rose 6.4% during the year, the group said in a trading update, with the group's signature brands — which include House of Coffees and Turn ’n Tender — growing sales 10.6%.
System-wide sales refer to sales reported by all restaurants across the network, including new restaurants opened during the period.
The group said while low menu pricing assisted with customer retention, it did have an affect on growth.
“In the SA market, margin pressure increased in the context of an intensely competitive trading landscape and sustained low food inflation,” the group said.
“Furthermore, frequent power outages and the lack of transformational economic and sociopolitical reforms weighed heavily on economic growth and business and consumer confidence,” the group said.
In morning trade on Thursday, the group’s share price was down 6.82% to R44.07, having lost 48.55% over the past 12 months.